Renewables
Renewables with storage beat gas generation costs, says ACWA Power
Renewable energy paired with battery storage is now significantly cheaper than gas-fired power under current international pricing.
Key points
- Renewables with storage are reported to be 20 percent cheaper than gas-fired power at global gas benchmarks.
- ACWA Power chairman highlights cost competitiveness during the WPC Energy Congress in Riyadh.
- International gas prices have climbed amid liquefied natural gas supply disruptions and high European demand.
Cost comparison
Renewable energy integrated with battery storage is approximately 20 percent more affordable than conventional gas-fired electricity when measured against international gas benchmarks, according to ACWA Power. Speaking at the 25th WPC Energy Congress in Riyadh, utility developer chairman Abunayyan stated that renewable generation could be nearly 40 percent cheaper than gas alternatives when utilizing prevailing global natural gas prices.
While acknowledging the inherent intermittency of wind and solar sources, Abunayyan noted that advancements in the cost-competitiveness of energy storage have improved the financial viability of renewable power systems.
Market pressures
Global natural gas prices have experienced upward pressure due to disruptions in liquefied natural gas supplies, particularly concerning shipments through the Strait of Hormuz. Additional strain has come from intense competition for available cargoes between European and Asian purchasers.
TradingView reported that Europe's benchmark Dutch TTF gas futures reached roughly €87 per megawatt-hour in mid-October, marking levels near their highest point since late 2022. Low regional gas inventories combined with the transit bottlenecks have intensified ongoing supply concerns across major markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
27.8% of electricity in the world was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
